Changing of the Guard or is Value of Value?

Stocks regained their footing after Apple reported excellent earnings with all major US equity indexes showing positive returns out pacing global equities in general.

At the moment, China (FXI) has the worst 6 month and current weekly returns as well.

The most interesting theme is that value stocks look to be emerging from a decade long slumber versus growth. This rotation could be a long anticipated resurgence which is not surprising as many stalwarts of growth have just recently thrown in the towel.

The highlights of this week’s market action are the following:

  • Risk Gauge’s overall remain bullish
  • Utilities are showing strength and risk off
  • Value stocks look to have bottomed relative to growth
  • NASDAQ 100 (QQQ) regained its footing with a little help from AAPL
  • IWM (Russell 2000) remains in warning phase
  • Emerging Markets are bearing the brunt of the trade wars
  • The retail sector and bio-tech are leading sectors and assuming leadership from semi’s and tech
  • Long Bonds broke down and confirmed a bear phase